Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
IJSREM40485
Volume:
9 |
1 |
Jan 2025
Pages:
1-6
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Banking and Business Economics
University College of Commerce & Management Studies
Agricultural credit is one of the important components of agricultural development. This is because the agricultural production involves huge expenditure before the realization of crop income. Farmers need finance for seeds, fertilizers, pesticides, irrigation, labor, machinery, livestock and post-harvest activities. In Rajasthan, the importance of agricultural credit is all the more because agricultural production is characterized by uncertainty in climate, inequality in irrigation facilities, variations in size of landholdings and differences in access to agricultural markets. This paper studies the effect of institutional agricultural credit on farm income and economic status of farmers with special reference to selected districts of Rajasthan, especially Bhilwara and Udaipur. The study is based on secondary information collected from NABARD, Government of Rajasthan, Reserve Bank of India (RBI) and recent academic studies published during 2021-2025. The analysis shows that institutional credit can increase farm income by easing liquidity constraints, allowing timely purchase of inputs and investment in productive assets. At the household level, access to formal credit can also reduce reliance on informal lenders and strengthen consumption capacity and economic resilience. But credit isn’t just working. The ultimate contribution of credit to farmer welfare depends on availability, adequacy, timing, interest cost, repayment conditions and productive utilization of credit. The study argues that Rajasthan needs a district-specific and integrated agricultural-credit strategy that combines institutional finance with irrigation, insurance, extension service, technology and market access.
KEYWORDS
Institutional agricultural credit is an important instrument for improving farm income and economic well-being in Rajasthan but its impact should not be interpreted in isolation. Formal credit can help alleviate liquidity constraints, allow for the timely purchase of inputs, support investment, and reduce dependence on informal lenders. Such mechanisms can lead to productivity gains and higher household income. At the same time, recent research shows that the effect of credit is dependent on complementary factors, such as irrigation, land availability, farmer characteristics, infrastructure and market conditions. The large differences in estimated crop-loan requirements between Bhilwara and Udaipur further show that Rajasthan’s agricultural-credit strategy needs to recognize heterogeneity across districts. The future goal should not be the mere increase of the total volume of agricultural credit disbursed. Policy should be focused instead on ensuring that the right farmers get the right amount of credit at the right time at an affordable cost. Institutional finance, when combined with irrigation, insurance, technology, extension and market access, is more likely to achieve sustainable improvements in farm profitability and household economic well-being.
1. Bhanot, D., Farias, V., & Sinha, D. (2025). Interest subvention for crop loans in India: Win-win or win-lose? Journal of Policy Modeling, 47(2), 371–393. 2. Government of Rajasthan. (2024). Economic Review 2023–24. Finance Department, Government of Rajasthan. 3. Government of Rajasthan. (2025). Economic Review 2024–25. Finance Department, Government of Rajasthan. 4. Maurya, S. K., & Vishwakarma, N. (2021). Status of agricultural credit and indebtedness in India: An analysis. The Indian Economic Journal, 69(1), 24–31. 5. NABARD. (2022). Rajasthan State Focus Paper 2021–22. National Bank for Agriculture and Rural Development. 6. NABARD. (2025). Rajasthan State Focus Paper 2025–26. National Bank for Agriculture and Rural Development. 7. Nayak, D., & Barodawala, R. (2021). The impact of institutional credit on agricultural output in India: An empirical analysis. Indian Journal of Economics and Development, 17(1), 227–231. 8. Nigade, D. D., Deshmukh, P. R., & Kamble, V. B. (2022). Relational analysis between profile of Kisan Credit Card Scheme beneficiary farmers and impact of Kisan Credit Card Scheme. Asian Journal of Agricultural Extension, Economics & Sociology, 40(1), 1–11. 9. Pavithra, S., & Singh, A. (2025). Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in India. The Indian Journal of Agricultural Sciences, 95(5). 10. Sonia, Malik, D. P., & Sanjay. (2022). Impact analysis of the factors affecting the adoption of the Kisan Credit Card scheme. Indian Journal of Economics and Development, 18(3), 637–645.
Publication Date
1/27/2025
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
0
Total views since publication
PDF Downloads
0
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...